A few years ago, I found myself in need of reliable transportation. After years of living in a large city and getting around with the aid of public transport, I took a job in a smaller town. That meant I needed a car fast. At first, I only thought about buying something new. After talking with a couple of auto dealers, I realized that a good quality used vehicle would be a good fit for me. With their help, I found a car with low mileage and a reasonable sale price. I'm still driving that used car today. If you are in the market for a vehicle, let me share what I learned from those dealers. You can put these tips to good use and end up with a car that provides years of reliable service.
If you need to purchase a car, and you don't have the cash necessary to purchase the car, you are going to need to get financing. In order to get the best financing offer, you need to know what you are doing when you go in and get financing.
Start with Your Credit Score
Before you try to work with a bank or dealerships to get a car loan, you need to know your credit score. Knowing your own credit score, as well as the information on your credit report, is powerful. When you know your score, you have a better idea of what type of loan you can expect to get based on your loan score. You can also talk intelligently about the actions on your credit report.
For example, if you missed a few payments on a loan three years ago, you can tell the banker that you missed those three payments because you were out of a job. You can then explain how you now have a job and have built up an emergency fund of six months so that even if you lose your job again, you will still be able to make your loan payments.
Knowing what is on your credit report will allow you to talk intelligently about what is on your credit report. This can help you secure better loan terms.
Be Prepared to Get Multiple Quotes
Knowledge is power. Don't just get one quote from one lender or dealership. Get quotes from at least three different places. When you get multiple quotes close together it will not hurt your credit score. Credit companies actually want you to get multiple quotes close together, and do not penalize you for doing this.
Getting multiple quotes will allow you to compare the terms you qualify for and will give you leverage to negotiate terms. For example, if one lender is willing to give you a credit interest rate but is not willing to give you the terms you want, you can leverage another lender against them to get them to give you more favorable terms.
Have Money Saved Up
Finally, you need to make sure you have some money saved up. Being able to put down a substantial amount as a down payment will help you secure a better loan. The lenders will see that you are financially responsible and that you were capable of saving up for a twenty percent or greater down payment, they are more likely to want to provide you with a loan for the rest of it. Also, the less money you take out for a loan, the less interest you will pay over the lifetime of the loan.
If you are ready to get an automobile and need to take out a car loan, make sure you know your credit score and the information on your report so that you can own it when you meet with a lender. Be ready to get multiple quotes and save up money so you can put down a substantial down payment.